The Business Bytes
TBB BUREAU
CATAMARCA (ARGENTINA)/BHUBANESWAR, JAN 15, 2024
In a groundbreaking development, Khanij Bidesh India Limited (KABIL) under the Union Mines Ministry officially entered into a significant agreement with Argentina-based CATAMARCA MINERA Y ENERGÉTICA SOCIEDAD DEL ESTADO (CAMYEN SE) to embark on the exploration and mining of Lithium.
The momentous agreement was formalized in the presence of distinguished figures including the Governor of Catamarca, Lic. Raul Jalil, Vice Governor of Catamarca, Eng. Ruben Dusso, Minister of Mines Catamarca, Marcelo Murua, and Ambassador of India to Argentina, Dinesh Bhatia. The signing-in ceremony witnessed the virtual participation of Union Coal and Mines Minister Pralhad Joshi, Mines Secretary VL Kantha Rao, KABIL Chairman and NALCO CMD Sridhar Patra, and KABIL CEO & NALCO Director (Commercial) Sadashiv Samantaray.
Union Minister Joshi, expressing his views on the occasion, remarked, “This marks a historic day for both India and Argentina, as we forge a new chapter in bilateral ties through the agreement between KABIL and CAMYEN. This step not only plays a pivotal role in propelling the energy transition towards a sustainable future but also ensures a robust and diversified supply chain for critical and strategic minerals essential for various industries in India.”
Notably, this venture represents the inaugural lithium exploration and mining project by a Government Company of India.
KABIL is set to commence the exploration and development of five lithium brine blocks, namely Cortadera-I, Cortadera-VII, Cortadera-VIII, Cateo-2022-01810132, and Cortadera-VI, covering an extensive area of approximately 15,703 hectares in the Catamarca province of Argentina. In addition, KABIL is gearing up to establish a branch office in Catamarca, Argentina, with an estimated project cost of about Rs 200 crore.
With this agreement, KABIL secures exploration and exclusive rights for the aforementioned blocks, allowing for evaluation, prospecting, exploration, and, upon lithium discovery, exploitation rights for commercial production. This strategic move not only fortifies KABIL’s pursuit of sourcing lithium for India but also brings in valuable technical and operational experience for brine-type lithium exploration, exploitation, and extraction.
A joint venture company, named KABIL, has been formed with the participation of three Central Public Sector Enterprises – National Aluminium Company Ltd. (NALCO), Hindustan Copper Ltd. (HCL), and Mineral Exploration Company Ltd. (MECL) – for global exploration of critical minerals, with NALCO leading as the principal partner. This marks a significant stride towards ensuring critical mineral security for the nation and aligns with the vision of ‘Aatmanirbhar Bharat.’
Argentina, a key player in the “Lithium Triangle” alongside Chile and Bolivia, boasts more than half of the world’s total lithium resources. It holds the distinction of being the second-largest in lithium resources, the third-largest in lithium reserves, and the fourth-largest in production globally.
This strategic collaboration not only reinforces the bilateral ties between India and Argentina but also contributes to the sustainable development of the mining sector, ensuring a resilient and diversified supply chain for critical and strategic minerals crucial to various industries.
